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Education, Subsidies, and Economic Growth

Question

Analyse how education and subsidies can increase a country’s economic growth rate.

Category:

Taxes and subsidies

Frequently asked question

Preview Answer

I. 🍃Introduction
- Definition of subsidies
- Importance of subsidies in the economy

II. Subsidies for Education/Training
- Increase in qualifications/skills
- Increase in productivity of workers
- Increase in mobility of workers
- Attraction of MNCs
- Reduction in unemployment
- Increase in quality and quantity of output

III. Subsidies for Firms
- Lowering of costs of production
- Encouragement of firms to increase production
- Increase in supply
- Lowering of prices
- Higher output likely to be bought and sold

IV. Subsidies for Consumers
- Education/health subsidies
- Help in gaining skills/jobs
- Increase in productivity

V. 👉Conclusion
- Importance of subsidies in promoting economic growth and development.

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